Home » Finance » Suzlon does a turnaround with Rs.600 million profit in Q1 FY12

Suzlon does a turnaround with Rs.600 million profit in Q1 FY12

Suzlon has reported strong Q1 FY12 numbers beating most of the earning forecasts by analysts. The company announced a 80% YoY growth in revenues to Rs. 4,326 crore / US$ 980 million. Further, the company maintained its guidance for FY12.

The company reported a PAT  of Rs. 60 crore / US$ 14 million, against loss of Rs. 912 crore /US$ 206 million of Q1 FY11, the corresponding period previous year.  The EBITDA was  Rs. 490 crore / US$ 111 million, against negative EBITDAof Rs. 546 crore / US$ 124 million of Q1 FY11.

The gross profit margins improved to 35%; from 30% in FY11.

Mr. Tulsi R. Tanti, founder, Chairman and Managing Director – Suzlon Group,said: “We are pleased to report a strong first quarter on all operational parameters with an EBIT margin of 8.1 per cent. Our performance is in line with our full year guidance, and we have maintained a very strong order book at US$ 6.63 billion.

“In addition, we have taken important steps regarding our long-term strategy – we have entered into an irrevocable agreement with ZF Friedrichshafen AG to sell our 26 per cent stake in Hansen for approximately US$ 187 million, and the REpower “squeeze-out” process continues as planned.”

Mr. Robin Banerjee, Chief Financial Officer – Suzlon Energy Limited, said: “We have reported a profitable first quarter, with a major turnaround from a loss of Rs. 912 crore in Q1 FY11 to a profit of Rs. 60 crore in Q1 FY12. We have improved our gross profit levels to 35 per cent despite a very competitive market environment and rising commodity prices. We have maintained our focus on consistently improving operational efficiency, managing our debt profile, and securing orders.”

The company added that despite the challenges in developed markets, the wind industry continues to grow with strong momentum in emerging markets and the offshore segment. Recent policy developments on energy security and safety concerns, such as the planned phase out of nuclear in Germany and carbon pricing being introduced in Australia, have placed an increased emphasis on renewables, particularly wind, translating to a positive outlook even in developed markets over the mid-to long-term.

REpower has established a current installed offshore base of over 171 MW, with over 91 MW added in the first quarter of the fiscal. Worldwide offshore installations grew by 96 per cent in 2010 and, as per MAKE consulting, the market is projected to grow by over 37 per cent annually and to reach eight per cent of all new global wind power installations by 2015.

The Suzlon Group order book stood at 4,739 MW (~Rs. 29,291 crore / ~US$ 6.63 billion) in value as on 29th July, 2011; with an order intake of 580 MW since the last announcement.

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